Copper price: What’s in store for 2025
The bellwether metal had a rollercoaster 2024, will next year bring more wild swings?
BHP Group, the world’s biggest miner, is looking to expand in Brazil as it seeks to move on from a 2015 mining disaster.
A settlement for a deadly tailings dam collapse at its Samarco joint venture with Vale SA has removed the main barrier to invest in the South American nation, said Emir Calluf, BHP’s new Brazil president.
“BHP is determined to have a brand in Brazil, not just be a shadow of Samarco,” Calluf said in an interview, adding that the nation’s mineral potential is underexploited compared to countries such as Australia, Canada and Chile. “Brazil has only 4% of its mineral potential explored. It has plenty of opportunity and we’re going to look at it.”
Calluf, who was named to the new role earlier this month, said BHP continues to be committed to Samarco, whose high-grade iron ore pellets are a key product for steel mills looking to produce material with lower emissions. He said the company has no plans to dispose of its 50% stake in the joint venture.
“BHP won’t sell it,” he said. “We’re looking at Brazil with fresh eyes and Samarco is important.”
BHP still faces one of the largest class-action lawsuits in the UK for the dam collapse, but the settlement signed in October “made peace with Brazilian society,” said Calluf, who took part in the negotiations as legal vice-president for Americas.
The new Brazil leader said he’s following BHP’s global directive to expand in core areas that include copper and iron ore as well as coal and potash. Such a strategy has led BHP to pursue acquisitions, including last year’s takeover of OZ Minerals Ltd., this year’s failed attempt to buy Anglo American Plc and a joint bid with Lundin Mining Corp. to buy Filo Corp. in July.
BHP and Vale may cross paths again in Brazil. BHP is assessing the future of copper mines inherited from OZ Minerals in northern Brazil’s Carajás region, next to Vale operations. Vale acquired a stake at Anglo American’s Minas-Rio, an iron ore plant that could end up with BHP if the company decides to pursue another Anglo buyout attempt.
Calluf doesn’t rule out finding partners to develop assets, such as what BHP is doing with Lundin in Argentina with the Filo acquisition. BHP also has mining rights in Brazil and retains some mineral research activity in iron ore areas in the country’s southeast state of Minas Gerais, according to documents from Brazil’s mining regulator.
(By Mariana Durao)
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